Leopoldo Fibonacci was an Italian mathematician born in the 13th century, known for having introduced to the West the sequence of numbers that bears his name, the Fibonacci sequence. This sequence is characterized by starting with the numbers 0 and 1, and each subsequent number is obtained by adding the two previous numbers. Thus, the sequence continues as follows: 0, 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, and so on.
The Fibonacci sequence has numerous applications in mathematics, natural sciences and financial markets. In finance, Fibonacci numbers are used to calculate retracements and extensions in price movements, allowing key support and resistance levels to be identified on charts.
In relation to indicators, Fibonacci is also used to determine retracement levels in a trend. Fibonacci retracement levels are percentages that are calculated from the relationship between the numbers in the sequence and are used to predict possible reversal points in a trend.
In addition to retracement levels, traders also use tools such as Fibonacci extensions, which allow identifying possible price targets in an uptrend or downtrend.
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